Ireland Telecommunications Report Q2 2016

Ireland Telecommunications Report Q2 2016

BMI View: Bundling of fixed and mobile products is a critical strategy as it lowers churn and enablesoperators to sell new services to their customers. Operators are investing in advanced fixed and mobileservices, such as 4G, VDSL and fibre to attract consumers onto their platforms, while the market hasbecome more convergent, with Vodafone launching its TV service to join eir and Virgin Media in potentiallyoffering quad-play.. BMI foresees higher levels of advanced technological uptakes going forward asoperators offer innovative services to attract new customers and to retain existing clientele in both,especially as the potential for deepening remains strong, with many users still on DSL or 3G servicesavailable for migration.

Key Data

The mobile market reported net additions in Q315, after two quarters of consecutive losses (and fivelosing quarters in the last six). Volatility seems to lessen following the merger between 3 and O2, with5.11mn subscribers at the end of September 2015. 3/4G users grew by 36.1% y-o-y according to theregulator.

The entire broadband market grew by 0.6& y-o-y to reach 1.713mn at the end of Q315, but this wasdriven by the fixed segment, thanks to VDSL, which grew by 4.4% y-o-y while dedicated mobilebroadband declined by 9.6%.

The fixed voice market has declined, following a restatement from ComReg, reaching 1.49mn, a drop of2.5% y-o-y.